(5) Responsibilities to stakeholders & society

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Stakeholder - an individual or group that has an effect on and is affected by the activities of an organisation

Shareholder - an owner of a company

Shareholder value - company share price

Pressure Group - group of people with a common interest who try to further that interest

Shareholder concept - direct interest of shareholders - Increase share price & dividends

Stakeholder concept - take into account responsibilities to other groups

+ employees more willing to stay

+ attract more people

+ popular with investors

+ better relationship with community/suppliers & distributes/Media coverage

+ less likely to be targeted by pressure groups

- Managers interest and no one else's

- May not be able to meet all the needs

CSR - corporate social responsibility

How it treats: stakeholders, investors, customers, employees, the environment, community

Genuine concern or a PR campaign?

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